MadAbout
Money
THE WAY YOU SPEND , MANAGE
AND INVEST YOUR MONEY LEAVES
A PROMINENT
IMPACT ON YOUR LIFE , AND EVEN THEN , MAJORITY
OF SCHOOLS DON ’ T TEACH YOU
THESE SKILLS .
ALTHOUGH THE MARKET IS FULL OF EVER
CHANGING CONCEPTS , BUT THERE ARE SOME RULES THAT JUST NEVER CHANGE . THEY ARE CALLED THE BASICS , AND THEY FORM THE FOUNDATION OF
ALL OTHER RULES .
Let ’ s take a look at these rules , otherwise you will never know what to do with your money , and you ’ ll keep losing it .
NEVER SPEND MORE THAN YOU EARN :
It is plain common sense , and we would like to explain with an example . Suppose you earn Rs . 30,000 per month , and have a monthly expense of Rs . 38,000 . This would mean that each month , you will have a debt of 8 thousand rupees , resulting in a total debt of Rs . 96,000 at the end of the year . This amount would be hard to clear up . On the other hand , if you spend exactly what you earn , you won ’ t have even a single penny to save for an emergency . If your expenses are less than your income , you will always have money to save . So , make sure your expenses are always less than your income , and the lesser the expense , the more you can save .
We all have heard that good old quote , “ Money begets money ”, right ? As much as it sounds like honey to the ears , it takes effort and wisdom to make it a reality .
PLAN FOR THE FUTURE :
And we are not talking about retirement here . Remember all those car ads where they ask you to make a down payment now and start giving installments from next year onward , you ’ ve got to be sure that you will be able to make those payments . If you are not sure , let go of the deal . On the other hand , if you invest in an accidental cover plan for your car , you will have your expenses covered in case of such unwelcoming emergency .
MAKE MORE MONEY WITH YOUR MONEY :
People always wonder how rich keep making money even while they sleep . The thing is they have saved plenty of it before setting foot towards this goal . Once you have saved a good amount of money , invest some part of it in high interest investment account . But never ever empty all the money from your low interest standard savings account . Always save enough amount of money so that you have something with you in case an investment doesn ’ t work out . See , the first thing that you must know , and we are sure you do , is that the trends of money making have changed a great deal . But the basics haven ’ t changed a bit . Yes , there are higher paying jobs ; there are more growth opportunities , in current times . But keeping your expenses lower than your income , investing part of your saved money will always be a good advice . And never blow up your paycheck the moment you get it , think about our future and plan accordingly .
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